Foreign Account Tax Compliance Act (FATCA)
Investment ID: 015-000000369
Overview
Program Title
Foreign Account Tax Compliance Act (FATCA)
Description
FATCA requires foreign financial institutions to report to the IRS information about financial accounts held by U.S. taxpayers, or foreign entities in which U.S. taxpayers hold a substantial ownership interest. This investment is essential to the IRS fulfilling its international commitments and to the IRS fully utilizing the information directed by Congress to promote compliance for U.S. taxpayers using foreign accounts.
Type of Program
Major IT Investments
Multi-Agency Category
Not Applicable
Associated Websites
http://www.irs.gov/Businesses/Corporations/Foreign-Account-Tax-Compliance-Act-(FATCA), https://sa.www4.irs.gov/fatca-rup/, https://www.irs.gov/businesses/corporations/faqsfatcaregistrationsystem, www.irs.gov
Investment Detail
FATCA initiatives improve international service and enforcement practices of the IRS via specialty audits and criminal investigations. FATCA PMO delivers IT solutions that enable the IRS to meet business responsibilities and legislative mandates. IRS has deployed major releases to ensure ROI. Prior to R1.0 Form 8938 was delivered to capture reporting data from individual taxpayers with foreign assets.*R1.0 & 1.1 focused on capability to register FIs worldwide & create/publish a Participating FI List with search/download functionality. R2.0 deployed IDES, introducing a secure data exchange, allowing FIs & HCTAs to submit FATCA data; deployed the ICMM for file ingestion, transcription & storage from IDES; and improved W&R compliance via updates to legacy systems. R2.1 included a Competent Authority Request capability allowing for formal communication with HCTAs, new functionality to process Forms 8938 & 8966, & backend employee analytics. R3.0 enabled Sponsoring Entities to bulk upload an electronic file; focused on updates to the FI List search/download tool; supported receipt & management of notifications in response to reciprocal data files; automated matching of Form 1042-S data (credit determination for Chapter 3 Qualified Intermediaries & Chapter 4 FATCA); and created an interface with ICMM source data for compliance & analytics. R4.0/4.1 provided functionality to move FIs to alternative status upon expiration of limited status; update existing forms submitted electronically & via paper, for ICMM processing; match & compare Withholding Agents' and Recipients' Form 1042-S filings & deposits; and make refund and reciprocal data available to Model 1 IGAs. R5.0 enabled Reciprocal Data Exchanges to include Form 1042S-Withholding Agent changes for TY2015; Application submission, renewal, & termination of Qualified Intermediary/ Withholding Foreign Partnerships/Withholding Foreign Trust (QI/WP/WT) Agreements; and Renewal of FI Agreements.*R6.0 addressed the following legislative requirements; Reciprocal Data Exchanges to include FS2017 compliance, provide ability for FIs to electronically submit a certification of a pre-existing account (the pre-existing certification ensures registered and approved FIs have been following IGAs with the U.S., and allow the QI, WP, or WT to electronically submit periodic certification. Foreign Account Tax Compliance. *Release 6.3.4 provided FATCA QI expanded capabilities for analysts to ensure QI/WP/WT are slotted into the correct certification cycle. The QI/WP/WT certification process is the key in ensuring entities are meeting their obligations under their agreement with the IRS.
*Release FY20_R2.0 provided FATCA FI the ability to maintain their sponsored entities to be able to meet their certification obligations under their FATCA agreement. Also provided FATCA FI supporting team the ability to track certifications that require follow up outside the FATCA FI system.
*Release FY20_R2.0 provided FATCA FI the ability to maintain their sponsored entities to be able to meet their certification obligations under their FATCA agreement. Also provided FATCA FI supporting team the ability to track certifications that require follow up outside the FATCA FI system.